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tv   Made in Germany - Business A game of risk  Deutsche Welle  November 22, 2017 5:30am-6:01am CET

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you can't put down your smartphone. or to make jokes the same. as we go about our daily lives she writes often the last thing on the minds. invisible hands slavery in the twenty first century story december second on d. w. . success
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ready comes without taking a risk every decision every investment brings with it the possibility of failure but there's a difference between taking a risk and being rushed so how do we weigh it all up welcome to today's edition of made in germany i'm having a home free. in the business while some of the biggest risks taken by company founded is alterable that the ones developing something from scratch based on a hunch that their idea could successfully corner the market the fact is most startups never get off the ground but speaking about fadia remains it to boot now some entrepreneurs are breaking their silence with the aim of encouraging others. when there's. no time at all i found myself getting totally burned out what. my thoughts kept looping back to the same issue. what do i do now where did i go wrong . knows what it means to take a risk and fail in twenty ten he set up his own company with the goal of creating
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a coffee maker that could roast grind and brew coffee beans he quit his job at a law firm and set about receiving his dream. needs covered by some goal of my savings into capital with the idea of really making a big splash by bootstrap the company arrange the financing the team materials paid for flights except truck i invested about fifty or sixty thousand euros in the end probably more amenable to say. that developing the coffeemaker proved trickier than expected during one presentation for investors the machine started smoking so badly they had to call the fire department customers also complained about malfunctions stea ended up filing for bankruptcy that's not all hours ago unfortunately that was also the got married in the end we weren't even able to take a honeymoon and of course we had to move into another apartment
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a cheaper one. i also had to borrow money from friends and family to get back on my feet it was really hard. stories like this are music to patrick wagner's ears he organizes a forum in violin for entrepreneurs to speak openly about their failures and what they've learnt from them similar events take place in cities around the world and attract big crowds. i can try something out i can fall down and i get up again and it's all good and the. world keeps spinning that's one of the secrets of event success it creates an opportunity to really communicate it all you can sort of. interest is huge because failure is widespread nearly nine out of ten new businesses go bust it's especially bad in germany where anyone who files for bankruptcy and the next six
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years living at the subsistence level only after that while remaining debts be wiped. it's something that wagner has experienced himself firsthand together with some colleagues he's now encouraging top managers to come and talk about that and failure. if. people don't normally talk about their failures or about their bankruptcy it's not that moment you're totally naked also when someone bears their soul it builds this incredible trust. this when you come to one of our events you might end up meeting someone that you might want to work with because you bond over these sensitive issues you don't bond with people when you're presenting your ideal self on facebook. and here is open about his failure and is happy to tell his story. he founded a new company called vandy which also makes coffee machines he raised money with the crowdfunding campaign and this time he's been more successful he took delivery
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of the first three thousand machines in october this time around there were no complaints but he's taking nothing for granted. and it is with one of the risk has increased ten fold. we owe it to people we owe it to them to deliver what we've promised. and it's not just about the machines we're providing. you could say ok we've kept our promise delivered the machines. but it's really about delivering the entire functioning ecosystem that they're getting their coffee on the coffee really comes from the copy farmer not from amazon that's not easy because there are ten thousand people not five. cents in the world or. maybe the old saying is true you have to take risks to succeed. and even if things don't work out many people will still win in the end because they've gained experience and learnt that even after failure life goes on.
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and you've probably heard the saying it's not whether you get knocked down it's whether you get back up words many americans seem to live by but here in germany there's little appetite for risk taking there's no such thing as zero risk though it's all about managing it so we sent our reporter your human egg is out to learn about when to hold them and when to fold them. what am i doing here i'm living dangerously. the number of bike ride is killed in accidents in berlin rose by seventy percent in twenty sixteen compared to the year before. that worries me but i'm still running to an interview on my cycle. and i'm not even wearing a helmet that's risky behavior because if i for without a helmet my risk of getting a concussion is thirty percent higher and my health is my responsibility.
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how do we deal with the rest i've come to the mosque like institute for human development to meet a world expert. get bigger answered by the central banks on managing risk in financial markets but he also studies risk in daily life. why do i need risk literacy known when see well if you don't care what happens to your money of your health your welcome to be risk illiterate of his. life but if you want to take control of your fears and emotions then it's better to make decisions in an informed relaxed and competent way inform you when. competent there will never be zero risk but say that's lesson number one of risk literacy tests we germans are always striving for zero risk we want to have zero risk of cancer zero risk of accidents and so on when you thought well that's totally wrong
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this is why we will always have risks and the future is always uncertain. who is to give it. back as it will for the max planck institute for human development houses the harding center for risk literacy who is harding. and how to go the harding center for risk literacy is funded by an endowment in london it's a kind of development aid for berlin. germany needs development aid. yes definitely david harding is an investment banker why do you need risk literacy in investment banking david harding and when we opened the center here david harding said he didn't part of his money through people's lack of financial risk literacy. and he wanted to give something back then. he knew that in the investment sector there are many experts who don't understand the numbers and statistics. what surprised him. was that our studies show that the
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same holds true of most doctors they don't understand the tests they order but as long as the patient doesn't ask questions. today when we can get the facts off the internet the idea that we have to teach doctors how to think is something new noise well what do we also have to teach business leaders how to think but yes. if you have an example as a. one of my former post docs did a study in the us. where they ask brokers and other people who deal professionally with stocks and investments a simple question. what is volatility. do you think most of these professional analysts were able to answer the question correctly. or. no they were given
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a simple calculation to do and they confused everything with a standard deviation and as a result that underestimated volatility. so what messages can i take home from that don't just rely on others think for yourself. even professionals are very risky where. there's no such thing as zero risk. well many managers have tough decisions to make every day and some might refer to other oracles for guidance of the management for dummies or a ted talk but a session at a con table may be their best bet one from a poker champion is convinced of it he teaches top movies and shakers how to manage risk and assess negotiating partners. death of fifty two cards gives two point six million possible poker. a number
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comparable to the cog in a typical lottery game. so it's collecting the chips just a matter of plain luck. applied mathematics not a game of chance period. stefan carl hamas should know he studied mathematics and is the winner of an international poker title been a sought after trainer since he coached a german team to the world championship here the expert will be coaching members of the lions club in cologne on applying poker to business. no one should think poker is about teamwork. i can only win when someone else loses but i can't expect mercy i don't deserve any mercy either because as a poker player i just profit from the others defeat. poker can be seen as a microcosm of business life decisions have been made despite uncertainty and under
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time pressure closely watched by the competition every mistake punished without. the training aims to improve the participants ability to assess risk and make decisions. try to give them the courage to say yes or no even if the chances aren't one hundred percent but maybe just seventy to thirty seventy to thirty is better than thirty to seventy so the decision has to be go. the lions want to go and play poker first they place their donations in the championship car the money's going to a children's cancer charity a worthy cause but when it comes to poker kindness isn't on the cards. this player is upping the ante to five hundred. only professionals can keep track of thousands of combinations beginners need to learn how to identify
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good opportunities to keep an eye on the other players. the gentleman who fought it out in the first round of betting what hands did they realistically have. in the first round i can't know that but after i think playing with people for three hours i know exactly what kind of arrows they have in their quivers. time to fold or raise maybe bluff to make the others think you have a strong hand or sit out a round. for some of the players this is quite different from the way they conduct business. shifts leave with a business there's no bluffing we work with tangible things money and there's no
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bluffing because you have to deliver. you have to deliver quality and it has to be real but here you can keep your cards hidden. money is an issue at the poker table and whether you're a poker player or run a business if you can accurately assess risk and make well informed decisions you're more likely to succeed over the long term carl hamas says going for a quick and easy result usually doesn't pay off. the right decisions that end in tragedy and there are ridiculous decisions that we praise to the skies just because they happen to be successful. what's important for me is sowing the seeds of success in a measurable manner. whether i'll be able to harvest them. goodness knows.
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risin with. a good lesson for a poker champion after all even if you're at the top odds are you won't stay there forever. now any woman who's trying to make it in a silicon valley knows the startup scene has a sexism problem it's no different here less than fourteen percent of the people who set up companies in germany are women which means men account for a whopping eighty six percent the main problem is procuring investment capital also feature managed to do just that but as she explains she had to fight for it so future begins her day with boxing training at seven a.m. she could knock out a much larger opponent if she wanted to but that's not the point. boxing is actually a very technical sport very complex it doesn't look like that at first glance but there are various punches which can land correctly or not. you notice very quickly
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for me boxing is a combination of power strength and stamina off them. she has no problems encroaching into what some might see as a male to maine. personally i wish there were more women who practice martial arts whether boxing or karate the world needs more female klitschko unified. and more female steve jobs women startup founders are still very much the exception chung is actually a doctor but since twenty fifteen she's been running a platform for medical tourism that matches patients with hospitals worldwide it's made forty thousand batches so far. in the world of business she's typically surrounded by men. i wish women were bolder in many
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situations. maybe direct less criticism and doubt at themselves and show determination and. trust themselves and go out into the world and start something up that's a quote. the biggest hurdle in founding a company is getting investors to put money into it john was looking to raise one point seven million euros from the two investors here and she got it thanks to our confidence and powers of persuasion. you have to convince and motivate your team you have to win over possible investors to fund it and to believe in the company to be convincing and that's most certainly one of sophie's strengths. does a good alpha males meet good alpha females and work as a team together. children used to work as a management consultant and when that when you're setting things up you encounter
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a lot of resistance. you have huge responsibility and you have to make decisions every day you need nerves of steel. a small ice cream break in the park with her staff that's part of the corporate culture in her company but so are all nighters and an uncertain future joan knows that both those things scare off many women from starting businesses female role models could help dispel some of those fears as among a different there's definitely a lack of role models i see that with myself there are hardly any successful women that i personally can look up to as an example. and that's the way it is with many things in life when there aren't any role models when there's fewer people who've experienced how it functions than it's something hard for young people to picture and then you lose courage sometimes. almost half of so if you jones employees are women the boss says that's just by accident she doesn't give women any special
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privileges in her company. the paradise papers have put the spotlight back on the topic of money laundering that leaks showing that a number of german banks have been processing payments to online casinos that are illegal money which often pastas through the hands of drug traffickers people smugglers and terrorists the u.n. estimates that money ordering costs economies up to one point seven trillion euros every year and it's on the ra e s. . in germany a special investigation has been going on for months aiming to put money in a wondrous out of business. it's taken a long time for us to get access to this office the financial intelligence unit or f i you was established back in june it's situated in cologne the exact location cannot be disclosed. the office employs one hundred people they
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include customs officials bankers and former business men and women the f i you is very discreet about its operations the director chooses his words carefully. in the guard purpose of money laundering is to hard illegally acquired assets from the government the poc says i'm proud to stop means identifying these cases out of the millions of illegal transactions because that's what essence event if it's young it's recognising them requires analysis and understanding of economic relationships and intuition and. these days money laundering doesn't just happen in casinos suntanning sounds restaurants and retailers it's also increasingly common in the property market. banks are required to report suspicious activity to be a funny you one reason the author is he was set up was to deal with the increasing
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problem of money laundering especially in germany. in the last few years there's been a big increase in the number of suspicious transactions being reported in twenty fifteen there were about thirty thousand and twenty sixteen the number had risen to forty thousand that put pressure on the existing law enforcement agencies who were last on the staff of. the new agency aims to reduce the quantity of information that police and detectives have been receiving in the future the f.i.a. will process the cases and pass on the most solid ones to investigators. i thought i don't as a north or t. the f.r.u. is bound by legal frameworks that allow cases without sufficient evidence to be processed with valena resources than would be possible with criminal proceedings. that save time and resources. critics including transparency international accused german authorities have not doing enough to
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crack down on money laundering that calling for the creation of a public register of the commercial interests behind companies some describe germany as a paradise for tax avoidance an illegal economic activity. the f.-i you boss chooses not to respond to such criticism instead of answering probing questions he focuses on his agency's core competencies. he lets the end of. the money laundering out was last amended at the end of june that further strengthened the powers of the financial intelligence unit germany the f.r.u. here compares well internationally because one important instrument available is the ability to enact emergency measures on credit institutes have already been obliged to freeze suspicious transactions for three days after alerting authorities instead of today's. what's new is that we can now hold transactions for one month is the voice of conflict. the f.i.a.
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the current team is struggling to deal with all the reports it receives the agency is planning to hire another fifty employees by the end of next year i'll have that work cut out for them after all money laundering takes place in all walks of life and transcends national boundaries. and money no wondering remains a big topic at international conferences but it's not the only problem delegates have to wrangle with there's also the group photo featuring some of the world's most powerful leaders in obligatory local garb. and our resident style girl again had ever has this to say about it. being a politician is hard work long hours the pay is so-so and some even have to get elected and there's companion in petting babies if you win you have to attend all those boring conferences and summits and you can ask any
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world leader they all agree apec summit the worst because if you're a world leader you like navy suits and red ties but at apec summit they make you do this. just a couple weeks ago all the world's most secure cost you party was staged in vietnam . who came up with this bright idea to put on national dress and smile for. the world bill clinton in the nineteen ninety he handed out bomba jackets to promote come around read this in the other tradition was born the next year in indonesia they gave him a dose of his own medicine a well deserved punishment and from then on the theme party vibe continued and less
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fun was being that star trek model two thousand and fourteen in beijing told by the next generation. of the returning western thing. george bush he loved it and here's why. canada's young trudeau got so excited about his job he had to be restrained shortly after this picture was taken. and it seems the teletubbies had a big run on vietnamese state t.v. in two thousand and six the two thousand and five summit was held in the koreans and the unpredictable weather in sydney obviously decided this. but i'm really really looking forward to next year because you see next year the host country will be up what you again. do you want to know what traditional dress looks like there.
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what if it falls off. and that's it for this week on a made in a gemini thanks for joining us and see you again safe.
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because that is where they start to divide the country you need to know where they start to divide the language your blood flow your for cooling the collapse of the soviet union left its constituent nations on their own how strong is the legacy. he
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. frankfurt. international gateway to the best connections self and road and rail. located in the heart of europe you are connected to the whole world. experience outstanding shopping and dining office and trialling services. biala gassed at frankfurt airport managed by for. celebration stretched late into the night in zimbabwe following the resignation of longtime president robert mugabe the ninety three year old finally stepped down
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